Blockchain has the ability to transform everything from voting to financial markets.
Since the release of Bitcoin in 2008, the first decentralized peer-to-peer electronic cash system, blockchain technology has developed tremendously. Today, the advantages of the technology behind Bitcoin are being experienced by innovators in different fields. Many industries are discovering interesting ways to incorporate blockchain into their services and infrastructure, from pharmacy to finance.
Through increased transparency, improved security, and easier traceability, blockchain technology can open new opportunities and help companies.
There are many advantages that this technology, through its distributed and decentralized nature, can offer to companies in several different industries:
Increased transparency
The best feature of blockchain is greater transparency. This brings an unparalleled dimension of transparency to financial structures and corporations, keeping each sector of the business committed to acting with honesty towards the development of the organization, its culture, and its customers.
Blockchain technology can help in solving transparency and trust issues. For example, the adoption of Blockchain into a digital government scenario can respond to common e-voting issues and also promote elections transparency, increase audibility, enhance voter confidence, and strengthen democracy.
Doing so, would greatly decrease the risk of electoral fraud, which, considering the proliferation of electronic voting systems, is a major concern.
Increased performance
Because of its decentralized structure, blockchain eliminates the need for intermediaries for fields such as banking and real-estate in several processes.
The blockchain enables easier transactions compared to conventional financial services by facilitating P2P cross-border digital currency transfers. With a centralized system of ownership records and smart contracts that would optimize tenant-landlord agreements, property management procedures are easily implemented.
Better security
As each new transaction is secured and connected to the previous transaction, blockchain is much safer than other data systems.
As the name suggests, blockchain consists of a network of computers that come together to validate a block and this block is then linked to a chain database. Blockchain is made up of a complex series of computational numbers and once created, it is impossible to change them. This irreversible and incorruptible existence of the blockchain protects it from false data and hackers.
Enhanced traceability
Each time an exchange of goods is reported on a blockchain, an external audit is available to track where the goods came from. Not only does this help to increase protection and avoid theft in exchange-related industries, but it can also help to check the validity of the assets exchanged. It can be used to trace the supply chain from supplier to seller in industries such as medicine or to provide absolute proof of ownership in the art industry.
Blockchain & E-commerce – a winning combination
By setting up a decentralized economy, the implementation of blockchain technology in the eCommerce marketplace can trigger a dramatic change.
Possible use cases of blockchain for the e-commerce industry:
- Revamping payment methods
- Better security
- Improved supply chain management
- A more transparent eCommerce marketplace
- Spawning genuine reviews and personal offers
The role of blockchain in the manufacturing industry
Often, business data moves across the supply chain in the manufacturing sectors. They have a structured way to capture, store, and share data.
When it comes to blockchain technology, it has the ability to build more intelligent and safe supply chains, where you can monitor your product’s path with real-time visibility.
For example, you can monitor materials while evaluating where they arrived, who received them, how and when they are delivered to the next level, whether you anticipate a material distribution, and so on. All in the blockchain is registered as blocks.
The main benefits of using blockchain in the manufacturing industry are:
- Enhanced inventory management
- Improved data security
- Better transparency and traceability
- Automated supplier payments
- Improved customer engagement
Distributed ledger technology tackles the complexities of existing global supply chains, that are unreliable, poorly monitored, and sometimes exploitative. Blockchain facilitates accurate inventory monitoring, allows improved licensing of services, products, and applications, and eventually increases accountability of consumer goods’ origins, from manufacturing to consumption.
As blockchain technology continues to progress, the supply chain industry is sure to see the true forms of transparency, accountability, and efficiency.
The value of blockchain for the healthcare sector
- Setting up a trusted network: providing patients with a summary of what information is exchanged, while allowing them to determine who their medical data is shared with (smart contracts).
- Reduced price of transaction: the cost-effectiveness of storing data. In cloud computing, the use of blockchain can be an important tool for data transactions.
- Standardized data fields: in format, a lot of data differs and is therefore not readily consistent between different systems. The format is standardized by blockchain and stimulates interoperability.
- Real-time data management: data can be analyzed in real-time using the blockchain, which can have many uses, such as monitoring medications, personal subscriptions, etc.
Blockchain-based healthcare solutions can make medical data management and medical supply monitoring quicker, more effective, and more reliable. This will greatly enhance patient care, promote the progression of medical advancements, and ensure the legitimacy of global markets for medicines.
The advantages of blockchain for the financial industry
Financial services are struggling with outdated operating procedures, sluggish payment settlements, minimal accountability, and weaknesses in protection. Blockchain improves the efficient digital transformation of financial instruments, thus increasing liquidity, reducing capital costs, and reducing risk to counterparties.
It is crucial for the financial services industry to innovate and to discover emerging technologies, such as blockchain, in order to improve their products and services.
In a nutshell
There are already whispers in the business corridors of how blockchain technology has the potential to transform any industry.
The blockchain has to be implemented with an objective to drive operational efficiencies. If successfully implemented, the blockchain technology has broader implications, undoubtedly, positive ones.